Djibouti

{"ftc_utility":"medium","fbar_trigger_notes":"US expats working in Djibouti who hold local bank accounts at institutions such as Banque de Djibouti et du Moyen-Orient or Commercial Bank of Ethiopia branches will trigger FBAR filing if account balances exceed $10,000 at any point during the calendar year. Djibouti uses the Djiboutian franc (DJF), which is pegged to the USD at approximately 177.72 DJF per USD, simplifying conversion calculations.","ftc_utility_reason":"Djibouti levies income tax on employment income at rates up to 25%. US expats earning above the FEIE exclusion ceiling ($126,500 for 2024) can use the Foreign Tax Credit to offset residual US tax on excess income. For those fully covered by the FEIE, FTC utility is low. For higher earners or those with investment income taxed locally, FTC provides meaningful shelter.","presence_day_count_notes":"Djibouti does not impose strict visa stay limits on most nationalities given its role as a regional transit and military hub, but long-stay residency visas or work permits are required for lawful employment. The 330-day physical presence count is generally achievable for contractors and US military-affiliated civilians stationed there. Days spent outside Djibouti for any reason do not count toward the 330-day threshold.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":36000,"local_tax_rate_on_earned_income":0.25,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Djibouti tax residents is treated as ordinary income subject to progressive individual income tax rates up to 25%. No treaty-based relief is available.","tax_rate":0.25,"locally_taxed":true},"social_security":{"notes":"No US-Djibouti tax treaty or totalization agreement exists. US Social Security benefits received by a Djibouti resident are foreign-source income. In practice, Djibouti does not specifically target Social Security payments for taxation, but no statutory exemption applies.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"No treaty exists and Djibouti does not have specific rules recognizing Roth IRA status. Qualified Roth distributions are not wages or pension payments in the traditional sense. In practice, Djibouti tax authorities are unlikely to tax Roth distributions, though no formal exemption is codified.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"The United States and Djibouti have no bilateral income tax treaty. Distributions from US 401(k) or IRA accounts received by a Djibouti tax resident would be treated as foreign-source pension or income and potentially subject to Djibouti individual income tax at progressive rates up to 25%. Enforcement is limited in practice given Djibouti's administrative capacity, but no legal exemption exists.","tax_rate":0.25,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.25,"notes":"Djibouti does not have a separate capital gains tax regime. Gains from asset disposals are generally folded into ordinary income and taxed at standard progressive rates, with the top marginal rate of 25% applying to individuals.","details":{"tax_type":"Capital Gains Tax","country_name":"Djibouti","country_iso_code":"DJI","source_references":["Djibouti General Tax Code","KPMG Africa Tax Guide","EY Worldwide Tax Guide"],"last_verified_date":"2026-06-03","general_description":"No standalone capital gains tax exists in Djibouti. Capital gains realized by individuals and corporations are treated as ordinary income and subject to the applicable income or corporate tax rates. Specific exemptions may apply to certain asset classes under the investment code.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Taxed as ordinary corporate income at the standard corporate income tax rate of 25%."},"individual_capital_gains":{"rate":0.25,"tax_treatment":"Taxed as ordinary income at progressive rates up to 25%. No preferential rate for long-term holdings."}}}

{"notes":"Dividends paid by Djiboutian companies to resident and non-resident individuals are subject to withholding tax. The standard withholding rate on dividends is 10%. No additional shareholder-level tax applies once withholding is deducted for non-residents. Resident individuals may have the withholding credited against their final income tax liability.","rates":[{"rate":0.1,"type":"withholding","notes":"Standard withholding rate on dividends paid to both resident and non-resident recipients. Rate applies under domestic law in the absence of a treaty reducing it."}]}